France PMI November 2016

France: Flash Composite PMI points to expansion in November

November 23, 2016

The Markit Flash Composite Purchasing Managers’ Index (PMI) rose from a revised 51.6 (previously reported: 52.7) in October to 52.3 in November, overshooting market analysts’ expectations of a softer 51.8 increase. The increase takes the indicator further above the 50-threshold that separates expansion from contraction.

November’s print reflected opposing trends in the French private sector. Output growth in the services sector accelerated and offset softer growth in manufacturing. New business increased in service and manufacturing, with the former accelerating to a 17-month high while the latter grew at a marginal rate. Staffing rose in both manufacturing and services and the expansion in job creation reached the sharpest increase since June 2015. Business expectations in the private sector remained optimistic, though they eased to the lowest level this year. Regarding price developments, input costs rose at the sharpest rate in over four-and-a-half-years and output prices fell owing to greater competitive pressures.

IHS Markit noted that, “the latest figures point to a further solid rate of growth in the French private sector […] driven by another marked rise in service sector activity”

FocusEconomics Consensus Forecast panelists see fixed investment growing 2.6% in 2016, which is up 0.2 percentage points from the previous month’s estimate. For 2017, the panel sees investment expanding 1.9%, which is up 0.1 percentage points from last month’s forecast.

In October, the seasonally-adjusted IHS Markit Composite Purchasing Managers’ Index (PMI) edged up to 54.1 from 54.0 a month earlier, pointing to a roughly stable pace of growth in services- and manufacturing-sector activity.

Sign up for our newsletter

Cookies Policy: We use third-party cookies to improve our services by analyzing your browsing habits.
By continuing to use this website you are giving consent to cookies being used. For more information on cookies and how you can disable them, see our "Cookies Policy".
Close